Alcoholic Drinks - Hungary

The Alcoholic Drinks market in Hungary has been experiencing steady growth in recent years. Customer preferences have shifted towards premium and craft products, leading to an increase in demand for higher quality alcoholic beverages. Additionally, there has been a growing interest in locally produced drinks, as consumers value the unique flavors and cultural significance of Hungarian alcohol.

Customer preferences: Hungarian consumers have shown a growing preference for premium and craft alcoholic drinks. This can be attributed to a combination of factors, including an increasing disposable income and a desire for higher quality products. As consumers become more discerning about the beverages they consume, they are willing to pay a premium for unique and artisanal offerings. This trend is not limited to Hungary, but is also seen in other markets worldwide.

Trends in the market: One of the key trends in the Alcoholic Drinks market in Hungary is the rise of local and craft products. Hungarian consumers are increasingly interested in supporting local businesses and experiencing the unique flavors and cultural heritage of their country. This has led to a surge in the production and consumption of Hungarian wines, spirits, and craft beers. Additionally, there has been a growing interest in traditional Hungarian drinks such as pálinka, a fruit brandy, and Unicum, a herbal liqueur. Another trend in the market is the increasing popularity of online and e-commerce channels for purchasing alcoholic drinks. This trend has been accelerated by the COVID-19 pandemic, as consumers have turned to online shopping for convenience and safety reasons. Online platforms provide a wide range of options and allow consumers to explore and discover new products. This shift towards online purchasing is not unique to Hungary, but is a global trend that is reshaping the retail landscape.

Local special circumstances: Hungary has a rich history and tradition of winemaking, which has contributed to the popularity of Hungarian wines both domestically and internationally. The country is known for its unique grape varieties and diverse wine regions, which offer a wide range of flavors and styles. Hungarian wines are highly regarded for their quality and craftsmanship, and have won numerous awards and accolades. This reputation has helped to drive the growth of the Alcoholic Drinks market in Hungary.

Underlying macroeconomic factors: The growth of the Alcoholic Drinks market in Hungary can also be attributed to favorable macroeconomic conditions. The country has experienced steady economic growth in recent years, which has resulted in rising disposable incomes and increased consumer spending. Additionally, the government has implemented policies to support the local alcohol industry, such as tax incentives and marketing campaigns to promote Hungarian products. These factors have created a favorable business environment for both domestic and international players in the Alcoholic Drinks market.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.